Pledges and Actions - PBL Planbureau voor de Leefomgeving · With emission trading, the total abatement costs for developed countries, by 2020, will be below 0.05% of GDP for pledges,

Pledges and Actions

A scenario analysis of mitigation costs and carbon market impacts for developed and developing countries

Michel den Elzen, Angelica Mendoza Beltran, Jasper van Vliet

http://www.pbl.nl/cop15

Key messages

� High pledges EU and Japan in line with the comparable effort reduction range. The reduction target of the US is above the reduction range.

� Russia and the Ukraine: above BAU (surplus AAUs)

� With emission trading, the total abatement costs for developed countries, by 2020, will be below 0.05% of GDP for pledges, and about 0.25% for comparable effort

� Without ambitious developed country targets and measures to limit use of surplus AAUs, there is an oversupply of carbon credits resulting in low carbon prices.


Outline Presentation: Questions

1. What is the total reduction of the Annex I pledges?

2. How ‘comparable’ are the pledges?

3. What are the implications for post-2012 carbon market?


Current pledges of Annex I countries lead to reductions of 12 to 18% below 1990 levels

Emissions in tCO2 eq Low end High end 1990 2005 Relative

to 1990 Relative to 2005

Relative to 1990

Relative to 2005

Australia* 416155 529524 13% –11% –11% –30% Belarus 127361 75594 –5% 60% –15% 52% Canada 592281 734491 –3% –20% –3% –20% Croatia 32527 30561 6% 12% 6% 12% EU 27 5572021 5153699 –20% –14% –30% –24% Iceland 3409 3709 –15% –22% –15% –22% Japan 1272056 1358065 –9% –15% –25% –30% New Zealand 61948 77354 –10% –28% –20% –38%

Norway 49698 53800 –30% –35% –40% –45% Russian Federation 3326404 2123359 –20% 22% –25% 13%

Switzerland 52800 53790 –20% –21% –30% –31% Ukraine 922013 425666 –20% 73% –20% 73% United States 6135243 7106638 -3% –17% –3% –17%

Annex I total 18734206 18038941 –12.5% –8% –18.5% –15%


Annex I reduction depends on assumed target for the US (7% below 1990, 20% below 2005)

� With additional US reductions up to 17-21%, Annex I reduction 23-24%


EU27: only high pledge is in line with comparable effort reduction


Japan: only high pledge is in line with comparable effort reductions. Rules LULUCF determine stringency


United States: ambitious pledge is too low, unless additional reductions are included


Pledges Canada, Russia, Ukraine are far below, US pledge is too low, only high pledges EU and Japan are in line


Three post-2012 climate policy scenarios

1. Low ambition scenario: low pledge for reduction by Annex I countries and low-ambition mitigation actions (NAMA) in non-Annex I regions (4% below BAU)

2. Higher ambition scenario: high pledges for reduction by Annex I countries and high-ambition mitigation actions in non-Annex I regions (8% below BAU)

3. Comparable effort scenario: Annex I 30% below 1990levels, and non-Annex I 15% below baseline (BAU) emissions by 2020, to meet 450 ppm CO2 eq (2 oC target)


Pledges Russia and the Ukraine lead to new hot air


Abatement costs A1, by 2020, below 0.05% of GDP for pledges, and 0.25% for comparable effort

Banking Kyoto hot air is not allowed to maximise gains of Russia. Carbon price is 4-24 USD


Without emission trading, total abatement costs increase by a factor of 4 to 10


Non-Annex I may gain from REDD (despite 20% own contribution) and carbon market revenues


Non-Annex I may gain from REDD (despite 20% own contribution) and carbon market revenues

If Annex I countries would finance 80% of REDD activities in developing countries to halve emissions by 2020, costs would be around 13 to 18 billion USD /year, while non-Annex I earn 4 billion USD


Conclusions (1)

� Japan in line with effort-sharing approaches. Rules on LULUCF will determine stringency

� For the EU, only the more ambitious pledge would be just in line with the comparable-effort reduction range

� For the United States, high pledge is above reduction range, unless REDD-financed reductions are taken into account

� Canada’s pledge is above the least-ambitious results

� Russia and the Ukraine: above BAU (new hot air)


Conclusions (2)

� Present pledges (12 to 18%) are insufficient to meet 2 oCtarget

� With emission trading, total abatement costs for Annex I countries, by 2020, below 0.05% of GDP for pledges, and about 0.25% for comparable effort

� Without emission trading, costs would increase by a factor of 4 to 10

� Without ambitious developed country targets and measures to limit use of surplus AAUs, there is an oversupply of carbon credits resulting in low carbon prices

� There are high revenues for Russia and the Ukraine


PBL report

Sharing developed countries’ post-2012 greenhouse gas emission reductions based on comparable efforts

Den Elzen, Höhne, Hagemann, Van Vliet and Van Vuuren, PBL/ECOFYS reportsee: www.pbl.nl\cop15

www.pbl.nl/cop15


Back-up slides


Annex I reduction may be 5 to 13% or 14 to 21%, including or excluding all surplus AAUs

Impact Hot air1. Default (Kyoto hot air excluded) 11 – 19%2. All hot air included 5 – 13%3. All hot air excluded 14 – 21%Starting point for all: reference emissions

Impact US target4. US 17 or 21% reduction & all hot air excl. 14 – 24 or 26%

Documents

Pledges and Actions - PBL Planbureau voor de Leefomgeving · With emission trading, the total abatement costs for developed countries, by 2020, will be below 0.05% of GDP for pledges,